The Algal Industry Survey - February 2009

8/3/2019 The Algal Industry Survey - February 2009

1/29


2/29

The Algal Industry Survey

2009 Dr. Mark Edwards & Centre for Management Technology. All rights reserved. 2

THE ALGAL INDUSTRY

SURVEY

For more information on ALGAE WORLD 2009 please visitwww.futureenergyevents.com/algae

Copyright 2009 by Dr. Mark Edwards, Arizona State University & Centre forManagement Technology. All rights reserved.No part of this position paper may be republished in any form whatsoever, electronic, ormechanical without expressed written consent from the author. You may, however,distribute the PDF document without any alteration, to your colleagues and businessassociates that you think will benefit from the authors insights; however, you are notpermitted to offer this paper as free or paid download material through any internetsites.

Disclaimer And/Or Legal NoticesThe information presented herein represents the views of the author as of the date ofthe publication. Because of the rate at which conditions change, the author reserves the

right to alter and update his opinions based on the new conditions. This position paperis for informational purposes only and the author does not accept any responsibility forany liability resulting from the use of this information. While every attempt has beenmade to verify the information provided here, the author, resellers and affiliates cannotassume responsibility for errors, inaccuracies or omissions. Any slights of people ororganizations are unintentional.


3/29



Please send your questions and feedback to [email protected]


4/29



or decades, the algal industry moved forward very slowly. In a worldeconomy with low prices for fossil fuels and foods, alternative food andenergy production sources made no economic sense. Interest in algae

as a food source spurred considerable research after each of the world wars

but production problems and costs ended those efforts. Excitement aboutalgae as an energy source reignited algal research in the 1970s but fadeddue to production problems and oil prices at $10 a barrel.

Recently, the combination of escalating costs for energy and foods combined with climatechange has renewed interest in algae as a clean, carbon neutral energy source. Unlikeother forms of green energy such as solar, wind, waves, tides and geothermal, algae offerthe only practical source for liquid transportation fuels that may displace oil imports. In theU.S. and many other countries, about 97% of oil imports are liquid transportation fuels andincreasing costs and availability jeopardize the stability of nations. Disruption of fossil fuelimports would be catastrophic to the economy, food supply, military and transportation formost countries. Consequently, many countries are examining the potential for algae as anenergy source.

Research and production experience suggest that algal biomass offer considerableadvantages over land-based biofuels such as ethanol. Ethanol production consumes itsenergy contribution in fossil resources required for growing, harvesting, refining anddistribution. Ethanol competes with food crops for cropland, freshwater, fossil fuels andscarce agricultural chemicals thereby increases demand and prices for all agriculturalinputs and drives up food and feed costs.

Algal production does not compete with food because the biomass can be grown ondeserts or wastelands using no fresh water and no or few fossil fuels. Algae producebiomass use abundant resources that are surplus and cheap and will not run out. Algae use

sunshine, carbon dioxide, waste or brine water and some nutrients. Algal production canuse green energy for supporting biomass growth such as solar or wind.

Relatively little is known about the algal industry for three reasons: newness, intellectualproperty protections and extravagant claims. Minimal credible research has examined thisnew industry and most the major firms are extremely secretive. Intellectual propertyprotections for proprietary strains of algae are carefully protected and proprietary productionmethods undermine scientific collaboration. Numerous scientists at algal conferencescomplain that they have signed nondisclosure agreements with their companies and cannotshare critical details about what they have learned from their algal production experiences.The consequence of secrecy is that new firms are sentenced to repeat past mistakes.Companies have gone out of business repeating the same algal production mistakes

because prior knowledge was locked up in intellectual property protection.

The algal industry lacks credibility because many firms make grandiose claims on theirwebsites and corporate brochures with the intent of attracting capital investors. These firmscarefully avoid reporting their actual production figures or production failures in order tomaximize the probability of obtaining the next round of funding.

F


5/29



The Algal Industry Survey is intended to provide a baseline of industry information and toassist in creating strategy for research, development and demonstration priorities.

Methodologyhe Algal Industry Survey examines the critical industry issues including especiallyalgal production. Survey responses came from participants of Algae World 2008which met in Singapore in November and yielded 137 respondents. Algae World

2008 was among the first few high profile international conferences focused on the algalindustry. Algae World had attracted close to 150participants. The conference emphasizedalgal biomass production for energy and the speakers emphasized growth, development,extraction and processing issues focused on maximizing algal oils for energy production.

The Algae World 2008 Conference in Singapore included many international respondentsfrom all over the world but primarily from Pacific Rim countries and India. About 40% of therespondents identified themselves as scientists, 30% consultants and 20% academics.

Roughly 50% of respondents had less than five years experience in the algal industry whileabout 16% with over 20 years of industry experience. The algal industry is new so it is notsurprising that most participants have relatively short experience in the industry. In the U.S.,there has been no government funding for algal research for over a decade so most peoplewith algal experience work for international firms.

Survey research includes several limitations. The sample size for the Algal Industry Surveyis relatively small which limits its reliability and generalizability. The questions inquire aboutrespondent beliefs so the results are perceptual rather than factual. Future industry surveysneed to reflect the insights and beliefs of more experienced participants. Larger samplesizes will enable analysis of possible differences between experienced and lessexperienced respondents and possible differences between algal producers focused on

different products or producers from different countries.

ResultsThe survey began with a question about which biofuels would be produced from algalbiomass.

What will be the top three biofuels made from algae?Biodiesel, gasoline and jet fuel were the dominant biofuels respondents believe will bemade from algal biomass. Several respondents felt that methane or hydrogen would beproduced. There was little support for ethanol.

What feedstocks make themost sense for algal oil

Feedstock World

Marine algae 58%

T


6/29



production?Several presentations on the use ofmarine microalgal feedstock which mayhave skewed this result. Respondentsindicated a significant preference for

naturally occurring species overgenetically modified organisms. GMOsare likely to create ecological andpolitical challenges for producers.

Carefully selected strains 58%

Naturally occurring species 42%

Fresh water algae 28%

GMO strains 16%

Percentages do not add to 100 because respondents were able to select multiple methods.

Growing systemThe type of growing system was the mostcommon question most attendees asked.Producers have the most experience with

open pond production and open pondsoffer the lowest cost production method.Natural algal stands are not favoredprobably due to their low productivity fortarget organisms.

Growing system World

Natural stands 13%

Open or semi-closed ponds 58%Semi-closed systems 42%

Closed systems 28%

Where will algalproduction occur?Respondents were split onwhere algae production will

occur indicating a slightfavoritism to the tropics andmid-latitudes.

Location for algal production World

Tropics 38%

Mid-latitudes 35%

All over the Earth 27%

The critical variables for algal production systems put species selection at the top.

Critical variablesSpecies selection dominates theimportant production issues. Secondary

issues include light penetration, the typeof growing system and controlling culturevariables. Less emphasis was given to thecost of nutrients, methods of mixing theculture, the type of monitors and theavoidance of algal build up on or in theproduction containers.

Critical system parameters World

Algae species 4.1

Light penetration 4.0

Growing containers 3.9

Variable controls,

e.g. temperature and pH3.6

Nutrient costs 3.2

Mixing methods 3.2


7/29



Monitors 2.9

Fouling 2.9

Production systems seem to be most critical to the algal industry.

Critical issues for the algalindustryProduction systems represent the mosttangible elements of algal biomass growthand development. Speaker emphasized awide variety of different biomass productionmodels.

Numerous people indicate concerns aboutstaffing algal R&D and production because sfew people are trained, especially in the U.S.

where few universities have algae labs.Developing or selecting the best algal strainsis a key issue because many firms usespecies selection for proprietarydifferentiation. Cost for algal production inputwas also seen as a critical issue.

The set of production issues beginning withcomponent separation, light management,extraction are important but not as critical asproduction systems, personnel and strainselection.

Most critical industry issues World

Production systems 4.3

Trained personnel 4.2

Algal strain selection 4.2

Input costs 4.0

Develop high lipid strains 3.6

Component separation 3.6

Light management 3.6

Extraction 3.6

Contamination 3.4

Nutrient delivery 3.2

Temperature management 3.1

Intellectual property 3.0

Monitoring systems 3.0

Mixing 2.9

Public image 2.8

Supply-chainThe supply-chain results were consistentwith the results from the critical algalindustry issues. Conference interviewsindicated that many people were concernedabout the availability of capable people forstaffing the necessary disciplines to build anew industry.

It remains unclear whether upstream, inputsupply, and downstream, processing will beintegrated with producers or separated invertical marketing channels. The level ofconcern about processing, monitoring,extraction and nutrient supply were about

Supply chain issues World

Growing systems 4.3

Trained personnel 4.2

Component separation 4.2

Design / construction 4.0

Processing 3.6Monitoring systems 3.7

Extraction 3.6

Nutrient supply 3.6

Distribution / logistics 3.4


8/29



equal.

Water remediation dominated social and economic issues.

Likelihood that algae willplay out significant role insocial and economic issuesWater remediation was the highest ratedissue possibly because of the excellentpresentation by Professor Avigad Vonshankof Ben Guiron University that includedcleaning polluted water. Practically allnations of the world need water remediationand algae provide a low-cost, low energysolution.

Displacing oil imports, fossil fuels andsequestering CO2 all received high scores.Narrative comments from Algae Worldindicated a strong focus on algal energyproduction with significantly less interest incoproducts such as animal fodder,pharmaceuticals, fertilizers or moderatingworld hunger.

Social and economic issues World

Cleaning polluted water 4.5

Displacing oil imports 4.1

Displacing fossil fuels 3.8

Sequestering CO2 3.7

Cleaning polluted air 3.5

Animal fodder 3.4

Health foods 3.3

Medicine / pharmaceuticals 3.0

Moderating world hunger 2.8

Creating organic fertilizer 2.7

Reducing transport costs 2.6

Clean burning cooking fuel 2.5

Respondents were presented with the question: If your country focused on algaculture andmade it a top priority, how soon could industry replace 100% of imported oil?

Replace 100% ofimported oil for yourcountryRespondents were optimistic regardingthe probability of replacing imported oilwith home grown algal oil. Severalnarrative comments indicated thatreplacing oil imports was the top priority.

Replace 100% of imported oil World

10 20 years 47%

21 40 years 34%

never 19%

The following two questions requested narrative comments.

What three key things need to happen to move the algalindustry forward?


9/29



The dominant words used to enhance the industry were information, financing, fundingsources, education and production. The industry needs government investment becausethe initial investments and risks are very high. The recommendations are grouped andordered based on how often respondents recommended the action.

INFORMATION

The industry needs information sources to convey the algae story. Why isnt there a website that summarizes key algal sources, links and resources? Is there a profile of businesses and what they're doing in the algal industry? See

Appendix 1 at the end of this document. Can we create information sheets, pamphlets and books to inform people about

algae? Can we create a PR campaign, a political action committee and lobbyists?

FINANCINGThe industry needs considerably more funding from both public and private sources.

Where are existing firms getting their funding?

How can the algal industry persuade government to provide more R&D funding? How can investors evaluate algal investment opportunities?

EDUCATION AND TRAININGThe industry needs to find ways to train people in algal production.

Where can algal companies find trained technical and professional personnel? What kind of algal training is available and where? What technical skills and competencies are critical for building an algal industry? Is there a grade school and college curriculums for algae?

PRODUCTIONThe industry needs to describe and define algal production.

What are the key production issues and how are they solved? What is the level of investment necessary for algal production? How can production losses be minimized from invasive species or grazers? What are practical methods for algal extraction and biomass processing? Can small community sized production systems be developed?

COLLABORATIONThe industry needs to find ways to enhance networking and shared knowledge.

How can information be shared and still maintain a little property protections? What kind of collaborative social network might work for algal professionals? Is there a summary of bloggers and journalists who follow algae?

What algae information would most benefit you?Respondents indicated a desire for better information on algae, insights on financing,support for education and training, production information and stronger collaboration.Additional requests included the ideas below.


10/29



Industry summary. The algal industry may follow the lead of other forms ofrenewable energy such as solar and wind to create a summary of the industry.

Demonstration units. The algal industry should build and operate demonstrationfacilities so that people can see algal production.

Decision support. Information on production, extraction and processing are toodistributed and need to be more accessible.

Products and coproducts. What is the total product array for algal biomass andwhat production strategies are used to maximize each product?

Real production numbers. Actual rather than theoretical production numbers wouldbe a huge breakthrough.

Ideal strains. What are the ideal strains for various products and what are sourcesfor these strains?

Market trends. What are market trends in the algal industry?

Independent reviews. Are there independent reviews of algal production methods?

Summaryhe Algal Industry Survey was designed to provide a baseline of information about theemerging industry. Respondents were generally positive about the future of theindustry and optimistic about algae's potential to help solve critical social and

economic problems.

Most industry participants believe algal production will focus on three biofuels; green diesel,gasoline and jet fuel, JP-8. There seems to be no industry consensus on a best approach toalgal biomass production including growing systems or production locations. Algal

producers are experimenting with a diverse set of production models. Production modelsseem to vary based on the production objectives, type of feedstock and location.International producers tend to use open ponds while U.S. producers are planning to useclosed or semi-closed cultivated algal production systems. International producers areusing naturally selected algae species while U.S. producers are planning to use acombination of species selection and genetically modified organisms that maximize theproduction of algal oil.

The critical industry issues are stable production systems, trained personnel, strainselection and costs. Besides the production of liquid transportation fuels, respondentsbelieve algae will play a major role in carbon capture and recycle, water remediation andfeed for fish, fowl and animals.

Nearly half of respondents believe that a focused algaculture program could replace oilimports for their country in 20 years. Conversely, roughly 20% of respondents believe thatalgae will never replace oil imports.

Recommendations to move the industry forward include better access to information,substantial increases in public and private funding for algal R&D, stronger education and

T


11/29



training, more information on production issues and better networking and collaboration.Industry participants want to see demonstration projects, decision support systems andindependent reviews of algal production systems.

Future of algal industry research needs to drill down on production, supply chain and social

and economic issues. Improved information on industry needs will support industryparticipants and provide critical information needed for public policy decisions and support.

AcknowledgmentsSeveral key people assisted in the development of the survey including:

Mark Allen, CEO and President, A2BE Milton Sommerfeld, Professor, ASU Jim Sears, CTO and Chief Scientist, A2BE Jeff Mettais, Marketing Officer, A2BE

Greg Mitchell, Research Biologist, Scripps Institution of Oceanography

Qiang Hu, Assoc. Prof. Arizona State University

Al Darzins, Applied Sciences Manager, NREL

About the AuthorDr. Mark Edwards is Director of GreenIndependence.org, the AlgaeCollaboratory that brings together scientists, academics, practitioners,students and communities who share knowledge and biotechnology tools tobring algaes full promise to the world.

He recently released his book Green Algae Strategy which has been

enjoying considerable success and rave reviews from peers and industryexperts. Dr. Edwards provided excellent long term projections for Algae biofuels.

Please send your questions and feedback about The Algal Industry Survey to MarkEdwards, Arizona State University via email at [email protected].

About CMTCMT is dedicated to the provision of the latest global technologyand business information through high profile conferencesfocusing on renewable, liquid energy sources.

CMT has organized industry specific conferences on LiquidNatural Gas, and LPG, ground breaking summits on Energy technologies like Coal toLiquids, Gas to Liquids, and Bio-mass to Liquid, and alternative energy or future fuelsforums like Biodiesel, Biofuels and Ethanol. This has established CMT as the market leaderin promoting this nascent industry as an alternative global powerhouse. To find out moreplease visit www.cmtevents.com.


12/29



Algae World 2009

Algae World 2009 will be held from 27-28

April 2009 in Rotterdam, The Netherlands.

Algae World 2009 is a communicationsplatform for the algae community to meet,pinpoint and discuss key strategies adoptedby successful algae businesses in integratingfuture and upcoming trends into theirbusiness value chains.

In fact, at Algae World 2009, you will hear from the algae sectors top experts and decisionmakers as they share their frank insights on overcoming technical, organizational andfinancial challenges, as well as triumphing over the uncertain years ahead.

Algae World 2009 is a must attend forum dedicated to mapping the entire algae valuechain, from cultivation to application, and will give your Algae business the edge to stayahead in this very competitive environment!

The very exciting sessions at Algae World 2009 will begin with a focus on upcomingopportunities and successful business models shared by the sectors top projectmanagers and investors.

To find out more about Algae World 2009, and how to sign up for this authoritative eventtoday, please visit www.futureenergyevents.com/algae/attend/ today.


13/29



Appendix 1

Algal Industry Producer Profiles

bout 98% of the algal industry focus today is on algal biofuel production but has notproduced a hundred barrels of oil. Within three years, the industry will be producingmillions of gallons of algal oil and valuable coproducts. Green solar production will

expand exponentially.

The algal industry has moved from staid to super charged with breakthroughs occurringweekly. 1 Most innovations are coming from the private sector because U.S. governmentR&D and grants have been zero. Some of the leading players in the industry are getting$10 million in private equity but that is hardly enough to build a lab, let alone a small pilotplant. The industry needs substantial government investment to achieve GreenIndependence.

The industry faces two major threats:

1. Insufficient investment slows R&D and the world food crisis may degrade intomass migrations and war over insufficient food, clean water and energy.

2. Commercial firms control R&D and put a lock on algal production andbiotechnology breakthroughs.

If private firms locked up the basic production methods, then sustainable world foodsolutions would exist but are likely to be beyond the financial means of the people whomost need them. Widespread adoption and diffusion require open source, public access totechnologies. i

Three companies BASF of Germany, Syngenta of Switzerland and Monsanto of St. Louis have filed applications to control nearly two-thirds of the climate-related gene familiessubmitted to patent offices worldwide. These "climate ready" genes will help crops survivedrought, flooding, saltwater incursions, high temperatures and increased ultravioletradiation all of which are predicted to undermine food security in coming decades.2Company officials deny the climate-ready seed applications amount to an intellectual-property grab. They say GMO seeds will be crucial to solving world hunger but would not bedeveloped without patent protections.

Monsanto, for example, makes 60% of its revenue from genetically modified seeds.3 In2006, over 78% of U.S. corn used for all purposes came from genetically modified seeds.Big agribusinesses are eager to control access to genetically modified algal strains.

1See www.BiofuelsDigest.com.

2Weiss, Rick. Firms Seek Patents on 'Climate Ready' Altered Crops, Tuesday, May 13, 2008;

Page A04ps, Washington Post, May 13, 2008; A4.3 Marrero, Carmelo Ruiz. Biotech Bets on Agrofuels, Center for International Policy (CIP),

April 24, 2008. http://americas.irc-online.org/am/5179

A


14/29



Lack of government R&D investment has pushed the industry towards private investmentthat focuses predominately on biofuels. Algal solutions for food, medicines, vaccines andfertilizers are getting very little attention.

Industry activity is difficult to decipher due to extensive puffery and trade secrets.Executives talking about their companies at conferences, interviews, press releases and

websites tend to make grandiose claims designed to impress investors but too often tend tobe more hype and hope than fact. Neither production efficiencies nor costs are typicallyrevealed because they are considered proprietary. The other challenge is that the industryis so new, few participants have either a background in biotechnology or a track record inproducing algae.

Algaes potential has seduced many investors, including prominent Silicon Valley venturecapitalist firms. De Beers Fuels, a South African company, collapsed in 2007 followingseveral years of false promises. Over 75% of the companies researched for this project thathad high hopes in the 1980s and 1990s no longer exist.

The Department of Defense estimates that current production cost of algal oil currently

exceeds $20 per gallon. A crude oil barrel contains 42 gallons. Crude oil gets changed intopetroleum gas, gasoline, oils, tar and asphalt. Roughly 28 gallons of gasoline is refinedfrom each barrel of crude oil.

Therefore, a $120 barrel of crude yields about $112 worth of gasoline when gasoline costs$4 a gallon. Algal fuel at $20 a gallon would cost $560. Obviously, algal fuel is noteconomic until the cost of production decreases by a factor of five. In spite of the currentcost difference, over 50 companies and 20 universities are working on algae, primarily forthe production of algal oil. The organizations profiled here are sorted based on their algaegrowing strategy, not their investment potential.

Growing strategies include open ponds, natural settings and closed algaculture systems.

BiofuelsDigest.com tracks activity in algae and the biofuels industry.

Open pondsiveFuels, based in Menlo Park, California plans to extend the Aquatic SpeciesProgram research and use open-pond algae biofactories to commercialize itstechnology. John Sheehan, who led the Aquatic Species Program, joined Live Fuels

in 2007 as VP of Sustainable Development. Instead of attempting to convert algae directlyinto ethanol or biodiesel, this startup is trying to create green crude that could be feddirectly through the nations current refinery system.

LiveFuels created a national alliance of scientists led by Sandia National Laboratories, aU.S. Department of Energy National Laboratory focused on producing biocrude oil by theyear 2010. The alliance is expected to sponsor dozens of labs and hundreds of scientistsby the year 2010.

L


15/29



The companys web site displays technical exuberance in predicting that algae can produceup to 20,000 gallons of oil per acre. The company goes on to state that the entire U.S.supply of imported oil could potentially be grown on 20 million acres of marginal land.

OriginOil, Inc. in Los Angeles, California, received its first funding in 2005 and isdeveloping a technology that will transform algae into a true competitor to petroleum. The

company claims its patented technology will produce "new oil" from algae, through a cost-effective, high-speed manufacturing process. This supply of new oil can be used for manyproducts such as diesel, gasoline, jet fuel, plastics and solvents without the global warmingeffects of petroleum.

Seambiotics Algal Pondseambiotic, located in Ashkelon, Israel was founded in 2003 and produces algae for avariety of applications, including health foods, fine chemicals, medical products andbiofuels.

The firm is working with Inventure Chemical and with the Israeli Electric Company, usingIECs smokestack for a source of CO2 while it grows algae in eight open algal ponds.

PetroSun based in Scottsdale, Arizona is publicly held and the management team comesfrom the petroleum industry. Petro Sun began their algae-to-biofuel production factory inRio Honda, Texas, in April 2007. The algae farm is a network of 1,100 acres of saltwaterponds that PetroSun thinks will make 4.4 million gallons of algal oil and 110 million poundsof biomass per year.

PetroSun intends to extract algal oil on-site at the farm and transport it to companybiodiesel refineries via barge, rail or truck. The company plans to open more farms inAlabama, Arizona, Louisiana, Mexico, Brazil, and Australia in 2008.

The company also offers environmentally-friendly energy production: recycled energy. Theirrecycled-energy technologies capture the energy content of waste exhaust heat fromindustrial processes and internal combustion engines.

PetroSun's markets for the Waste Heat Generator include algae and other biomassfacilities, oil refineries and drilling rig power plants. It is estimated that 60% of all fossil fuelburned for these and other industrial uses is wasted in the form of heat, pressure andpolluting emissions. Their goal is to capture this wasted energy and convert it to usableelectricity. The Company is focusing its initial efforts in Louisiana, Texas, New Mexico andArizona.

PetroSun BioFuels Refining recently signed a joint venture to develop and operate a 30million gallon a year algal biodiesel facility in Coolidge, Arizona. Construction is projected tocommence in the third quarter of 2008. In 2007, PetroSun announced a letter of intent tosupply 54 million gallons of algal oil a year to a new Bio-Alternatives biodiesel plant in southLouisiana. The initial delivery to Bio-Alternatives refinery will be in the third quarter of 2008.

S


16/29



PetroSun created an algae-to-jet fuel team relationship with Science ApplicationsInternational. The companies are working to transition algal biofuel technology to thecommercial sector with government contracts. PetroSun has made twenty acres of pondsavailable at its Rio Hondo, Texas facility for R&D related to an algae-to-jet fuel. Refiner

Neste Oil in Helsinki, Finland is refining imported vegetable oils, palm oil and algae to

make 170,000 tons of biodiesel a year in Porvoo, southern Finland. The renewable fuel issuitable for all diesel engines and is the strategic cornerstones for Neste, who say thetechnology outperforms both existing biodiesel products and crude oil-derived dieselproducts available.

Neste's renewable fuels goal is to have 70% of its raw materials coming from nonfoodfeedstocks in ten years. By 2020, they want to have all their raw materials they use fromoutside the food chain.

Ingrepo, a Netherlands-based biotechnology company specializing in industrial largescalealgae production, plans to build algae production facilities in Malaysia. Partnering withBiomac Sdn Bhd, they will provide Malaysians with the opportunity to grow large-scale algal

production for biofuels. Biomac CEO Syed Isa Syed Alwi says the algal PowerFarms will beready for commercialization in the next year. Malaysia was chosen for its good weatherconditions to grow algae, infrastructure and government interest in agro-biotechnology.

Natural settingshe aquaculture industry began when producers enhanced natural settings to producemore oysters, clams and fish in open, semi- and closed-growing environments. Algaeproducers around the world have similarly been enhancing algal stands in natural

settings by reducing predators and improving water mixing.

The advantage of finding algae growing and cultivating the growth in natural settings seemsobvious: nature provides the growing container and most the nutrients. However,challenges similar to controlled settings occur in natural settings, including especiallycontrolling growth and stability.

Kelco, based in San Diego, harvests natural kelp beds with a specially designed mowingmachine. They load the heavy biomass onto barges for transport to the processing facilityto produce alginic acid.

Neptune Industries, based in Boca Raton, Florida, creates sustainable, eco-friendlyaquaculture with integrated solutions. Dwindling supplies of wild-caught stocks, continuedenvironmental damage, escaping fish and disease from self-polluting net pens haverestricted industry growth.

In addition to hydroponically grown vegetables, lettuce, herbs and fish ponds, Neptune'spatented Aqua-Sphere system uses fish waste to create additional revenue streamsthrough the growth of algae for biofuels and methane gas.

T


17/29



Blue Marble Energy, based in Seattle, searches for unwanted wild algae growth and hasdeveloped methods for cleaning polluted water where excess nutrients lead to algal bloomsthat plague water systems. BME converts algal biomass to energy by creating, centralizing,and harvesting wild algae blooms.

BMEs technology and process of harvesting remediates polluted water through biomass

generation. BME technology harnesses nutrients and converts polluted environments intonatural biofactories for generation of renewable energy feedstock while cleaning theenvironment. The companys business model is smart, they get paid to clean water andthey produce biomass that can be processed or sold. BME marine technology can beplaced in a broad array of geographies:

Waste water systems Fresh water lakes, rivers, and streams Metal remediation for mines and other polluting industries Coastal remediation

By addressing wild algae growth versus the traditional mono-culture growth for biomass

generation, the company keeps capital costs low and is able to produce a volume outputthat is multiples above closed- and pond-based systems.

Aquaflow Binomics, based in New Zealand, has a goal to become the first company in theworld to economically produce biofuel from wild algae harvested from open airenvironments. The three-year-old startup sources its algae from algae-infested pollutedwater systems; cleaning the polluted environment in the process.

Aquaflow Binomics harvests algae directly from the settling ponds of standard effluentmanagement systems and other nutrient-rich water. The process can be used in manyindustries that produce a waste stream including the transport, dairy, meat and paperindustries.

The two-step process first optimizes the ponds' productive capacity and then determinesthe most efficient and economic way of harvesting the pond algae. Algae are provided withfull opportunity to exploit the nutrients available in the settling ponds, thereby cleaning upthe water.

Algae are harvested to remove the remaining contaminants. A last stage of bioremediation,still in development, will ensure that the water discharge from the process exceedsacceptable quality standards.

The water and sludge treatment process offers a clean-up and management service forsewage treatment systems while also generating a low-cost feedstock for conversion to

fuel. The result is an algae-based extract that will ultimately be converted to an alternativefuel source. Aquaflow Binomics expects to be able to produce a viable biofuel on acommercial scale.


18/29



In 2007, publicly held Aquaflow used its algae-based biodiesel to run a Land Rover drivenby New Zealands Minister of Climate Change. The company has been working with Boeingon algae-to-bio-based jet fuel.

Biofuel Systems, a Spanish company, is developing a system for producing energy frommarine algae, with the hope of replacing fossil fuels and reducing pollution. Biofuel Systems

predicts the process will produce massive amounts of biopetroleum (their term for biodiesel)from phytoplankton in a limited space and at a very moderate cost.

The company says their system produces biodiesel from marine plankton and is verydifferent from existing systems that are producing biodiesel. The company envisionsproducing biopetroleum using a proprietary energy converter. The system will usephytoplankton as feedstock.

Closed systemslosed systems offer far more control over growing parameters than open ponds or

natural settings. Stressing algae to create more production of desired componentsby changing production parameters is practical only in closed systems. Closedsystems also avoid water loss from evaporation.

A2BE Carbon Capture of Boulder, Colorado builds carbon capture and recycle, CCR,systems that take advantage of algaes capacity to profitably recycle industrial CO2emissions into fuel and other coproducts. Mark Allen, CEO, says their advanced energy-conversion system combines algal CO2 capture technologies with biomass gasification andcreates an integrated renewable fuel production system. The CO2 can be recycled fromany source and the biomass feedstock for gasification into syngas may come from woodwaste, municipal solid waste or the processed algae waste. The CO2 produced from thebiomass gasification process is recycled to grow algae.

Jim Sears, President and CTO developed the patented system design and notes that theCarbon Capture and Recycle (CCR) biofactories can be scaled from a few acres to largefarms that recycle industrial CO2 emissions into algal biomass that can be furtherprocessed into valuable commodities including biofuel, animal feed protein and organicfertilizer.

At the core of the technology is the algae growing and harvesting biofactory. Each machineis 450 long and 50 wide consisting of twin 20 wide x 10 deep x 300 long, transparentplastic algae water-beds. It holds 150,000 gallons of algae. The biofactories work with anyspecies of algae including cyanobacteria and diatoms.

The harvesting technology is similarly adaptable to fit local needs. A2BE offers a novelbioharvesting technology where brine shrimp feed on the algae and the shrimp areharvested and processed. The CCR machine is climate adaptive due to thermal barriersabove or below the culture flow that regulate temperature. This allows deployment nearlyanywhere there is sunshine.

C


19/29



The A2BE business model shows how CO2 recycling is profitable. Their business planshows each ton of CO2 may be captured at a cost of about $40 for nutrients and $10 for theCCR biofactory and operations. The net revenue of $200 per ton of CO2 captured is basedon: oil ($40), protein ($90), methane ($25), fertilizer ($40), oxygen ($30) and CO2 credit($25).

A2BE has created an even more compelling production attribute than the profitability perton of CO2. Their CCR biofactory creates a carbon negative process because each ton ofcarbon captured and recycled into the various algal coproducts displaces and avoids about1.25 tons of carbon entering the atmosphere. The carbon negative process holds true whenthe original carbon is fossil sourced and the resulting products are burned as fuel.

A2BE is not only building a company to take on the substantial challenge of carbon capturebut they are building a collaborative group of select institutions, corporations, and keyresearchers to address the spectrum of talents and disciplines needed to rapidlycommercialize a solution called algae@work.

reenFuel Technologies of Cambridge, Massachusetts is led by Bob Metcalfe who

has a telecom background. The company reached an agreement in 2008 to build afuel plant in Europe worth $92 M.

GreenFuel Technologies evolved from MIT and government grants for research anddemonstration projects. The company has a world-class board of directors but has madesome serious mistakes in executing strategy. Essentially, the company discovered, similarto many other startups, that growing algae was more expensive than they had planned. In2007, the company had to change CEOs, lay off a large proportion of their staff and shutdown some projects such as the Arizona Public Service greenhouse in Arizona.

Recent tests of an algae-based system developed by GreenFuel reported that it couldcapture about 80% of the CO2 emitted from a power plant during the day when sunlight is

available.

GreenFuel Technologies claims that using its patented technologies for growth on a oneacre site the company can produce algal biomass in a year that can be separated tocomponents that include:

7,000 gallons of jet fuel 5,000 gallons of ethanol 1,000 tons of protein for foods 200 pounds of specialized nutrients 20 pounds of pigments

These production parameters lead the industry in hope and hype. GreenFuel Technologiesbuilds algal biofactory systems which use recycled CO2 to feed the algae. Their processuses the containers to carefully control the algaes intake of sunlight and nutrients. Thealgae are refined to biofuels. GreenFuel is backed by Polaris Ventures, Draper FisherJurvetson and Access Private Equity.

G


20/29



olazyme, Inc., based in San Francisco, is a five year old biotechnology company thatharnesses the power of microalgae to produce clean and scalable high performanceoils, biofuels, and green chemicals. The company focuses on new methods to

improve production productivity.

Solazyme ignores the sun and grows algae in the dark in large tanks where they are fed

sugar to supercharge their growth. Harrison Dillon, a geneticist and patent lawyer whoserves as the company's president and chief technology officer claims its a thousand timesmore productive than natural processes.4 Solazyme says it has already made thousands ofgallons of high-grade biodiesel and even light sweet "biocrude" with its processes, whichcan use anything from chemical waste to wood chips as a source of carbon.

Solazyme, raised $10 million in equity financing and $5 million in debt in 2007, and isexperimenting with different feedstocks, algal species and oil extraction methods. Thecompany hopes to reach commercial-scale biodiesel production in two or three years.Refiner Imperium Renewables of Seattle and Chevron have recently signed partnershipagreements with the company.

Solazyme is using its technology to make specialty oils for the cosmetics industry in orderto meet cash flow commitments. Solazyme demonstrated to the Department of Defensethat their algal diesel, Soladiesel has superior cold weather properties to any commerciallyavailable biodiesel and is more suitable for cold weather climates where the military hasbeen unable to use biodiesel.

Algenol Biofuels of Fort Meyers, Florida, was founded in 2006 to develop industrialscalealgaculture systems to make ethanol from algae on desert land using seawater and CO2.Algenol uses a patented technology with blue green algae, cyanobacteria that are nitrogenfixing which reduces their fertilizer cost. The firm uses natural and environmental selectioncombined with molecular biology to produce low cost and environmentally safe biofuels.

Algenol plans to make ethanol with blue green algae that produce oil and then secrete it.They will use 3.5 million biofactories to grow the algae that are three-feet by fifty-feet andshaped like soda bottles. Most algae companies are trying to make biofuels by drying andpressing the biomass to make vegetable oil that can be processed into biodiesel. Algenolwill use a process to coax individual algal cells to secrete ethanol. The fuel can be takendirectly from the algal tanks while the algae continue to thrive. This process usessignificantly less energy than drying and pressing the biomass for oil.

Algenol signed an $850 million deal with the Mexican company BioFields to grow algae forbiofuel. Algenol plans to make 100 million gallons of ethanol annually in Mexico's SonoranDesert by the end of the 2009. By the end of 2012, Algenol plans to increase production toone billion gallons. The U.S. will produce about 10 billion gallons of corn ethanol in 2008

but will consume 40 million acres of cropland, two trillion gallons of fresh water and 5 billiongallons of fossil fuel.

4Solazyme web site, http://www.solazyme.com/news080415.shtml

S


21/29



Algenol operates the world's largest algae library in Baltimore, Maryland to study theorganism that can grow in salt or fresh water, and expanding the technique to locationsbeyond Mexico. The company hopes to build algae-to-ethanol farms on U.S. coasts.

Sapphire Energyapphire Energy, based in San Diego was launched in May of 2007 and initiated anew biofuel category called green crude production. CEO Jason Pyle says his teamhas built a revolutionary molecular platform that converts sunlight and CO2 into

renewable, carbon-neutral alternatives to conventional fossil fuels without the downsides ofcurrent biofuel efforts. The end product is not ethanol or biodiesel but biocrude, renewable91 octane gasoline.

Sapphires fuel products are chemically identical to molecules in crude oil, making companyproducts entirely compatible with the current energy infrastructure cars, refineries, andpipelines. Sapphires scalable production facilities can grow economically becauseproduction is modular and transportable. The green crude produces fewer pollutants in the

refining process and fewer harmful emissions from vehicle tailpipes.

Sapphire will not reveal the type of algae they use but it is most likely a genetically modifiedcyanobacteria, blue-green algae. The advantage to this form of algae is that the algaesecrete the biocrude oil which rises to the top of the tank and can be skimmed. Avoidingharvesting the algae saves time, cost and may be more productive if the plants secreteenough oil.

Inventure Chemical Technology based in Seattle is working on their patent-pendingalgae-to-jet fuel product and has produced algae-based fuel in 10 gallon tests. Thecompany plans to set up a test plant to produce up to 15 million gallons of biofuel a year.The algae used for biodiesel conversion is sourced from facilities in Israel, Arizona, andAustralia. Inventure expects its technology will deliver a viable ROI for companies that usealgae technology for sequestering CO2. Inventure also provides expertise in both processconversion and plant design and construction.

Vertigro Energy, based in San Diego, is a joint venture of eco-technology companies,Valcent Products and Global Green Solutions focused on producing vegetable oil which canbe used directly as biodiesel.

Valcents High Density Vertical Growth System maximizes algae growth in a closed loop,vertical system. In addition to biofuel, the algal oil can also be used in foods, feed stocks,pharmaceutical supplies, and beauty products.

The company says 90% by weight of the algae is captured carbon dioxide, which issequestered by this process and contributes significantly to the reduction of greenhousegases. Valcent has commissioned the first commercial-scale bioreactor pilot project at itstest facility in El Paso, Texas. The company believes it can significantly lower costs over oil-producing crops such as palm and soybean.

S


22/29



olena, based in Washington State, uses its patented plasma technology to gasifyalgae and other organic substances with high energy outputs. Solenas plantsproduce clean, reliable electricity, using no fossil fuels and no CO2 emissions.

The company is talking with Kansas power firm Sunflower to build a 40-megawatt powerplant which will run on gasified algae. The algae would be grown in big plastic containers

and fed by sunlight and sodium bicarbonate, which is a byproduct of an adjacent coal plant.

Using a plasma gasifier, Solenas technology converts all forms of biomass into a syntheticgas, syngas. The syngas is then conditioned and fed into a gas turbine to produceelectricity. Solenas sequestration process recycles CO2 and in the process producesbiomass for a continual renewable source of fuel.

Solix Biofuels, based in Fort Collins, Colorado, was founded in April 2006 and backed byColorado State Universitys Engine and Energy Conversion Laboratory. Solix Biofuelsintends to use microalgae to create a commercially viable biofuel that will play a vital role insolving climate change and petroleum scarcity without competing with global food supply.The company announced in 2008 that it will build its first large-scale facility at the nearby

New Belgian Brewery, where CO2 produced during the beer-making process will be used tofeed the algae.

Solix says their success comes from knowing how to select the right algal species, to createan optimal photo biological formula for each species and to build a cost effective biofactorythat can precisely deliver the formula to each individual algal cell, no matter the size of thefacility or its geographical location.

XL Renewables, based in Phoenix, Arizona, is a 2007 start-up with a patent pending algalproduction system called Simgae for simple algae. The company changed its name from XLDairy Group to XL Renewables in 2007 to emphasize its focus on creating renewableenergy using dairy waste streams.

XL Renewables uses common agriculture and irrigation components to produce algae at afraction of the cost of competing systems. The XL Super Trough uses a miniaturegreenhouse-type process to produce the algae in laser-leveled 18-inch deep, 1,250- footlong troughs. Mechanized equipment installs the specially designed plastic liner sheets withintegrated aeration and lighting systems along the six-foot wide troughs.

Depending upon need and customer demand, a plastic sheet can be installed on top of thetrough to make it a closed system and increase algae production during coolertemperatures.

The XL Super Trough has no moving parts and no connection points except at the end of

the troughs. The water used in the process is fortified to enhance production and is pumpedthrough the troughs to a harvest system where the algae are extracted. The water isrecycled back through the troughs.

Carbon dioxide is injected periodically and after roughly 24 hours the flow leaves the troughwith a markedly greater concentration of algae than when it started.

S


23/29



Supporting hardware components and processes involved are direct applications from theagriculture industry. Re-use of these practices avoids the need for expensive hardware andcostly installation and maintenance. The Super Trough System for algae biomassproduction is available for $25,000 per acre.

The design is expected to provide an annual algae yield of 300 dry tons per acre. Capital

costs are expected to be approximately $45k - $60k, a 2 - 16 times improvement overcompeting systems. President Ben Cloud estimates profitable oil production costs of $0.08 -$0.12 per pound. These oil costs compare to recent market prices of feedstock oils thatrange from $0.25 - $0.44 per pound.

XL Renewables is developing an integrated biorefinery located in Vicksburg, Arizona, 100miles west of Phoenix. The $260 million project integrates a modern dairy operation with abiofuels plant to produce ethanol, biodiesel, milk, animal feed and compost fertilizer. Theintegrated biorefinery uses the dairy manure, along with other waste streams to provide100% of the power, heat and steam needs of the project and significantly lower productioncosts. The company expects to produce algal fertilizer at about $300 a ton.

XL Renewables plans to sell the XL Super Trough System and Algae Biotape globally forthe economical production of algal biomass to be used as an alternative feedstock to cornfor biofuels production.

urora Biofuels, developed at the University of California at Berkeley, usesgenetically modified algae to efficiently create biodiesel. Aurora claims the patentedtechnology, developed by microbial biology professor Tasios Melis, creates biodiesel

fuel with yields 125 times higher and have 50% lower costs than current productionmethods.

Bionavitas, Based in Snoqualmie, Washington, says it has developed patent-pendingtechnology for the high-volume production of algae using biofactories.

Their 2007 patent application shows their competitive advantage to be the lighting systemthat includes one or more light-emitting substrates configured to light at least some of aplurality of photosynthetic organisms retained in the bioreactor.5 This sounds like fiber-optic lights embedded in the algaculture system.

Bodega Algae, based in Boston, Massachusetts, is associated with MIT and was foundedin 2007. Bodega Algae says it has developed a patent-pending system to grow algae inalgaculture systems with light and nutrients that it says is lower cost and more efficient thanthe current methods. However, Bodega Algaes website is now inactive.

Cellena, based in Hawaii, is a joint venture created by the algae-to-biofuel startup HR

Biopetroleum and Shell oil. Shell has majority share of the company, which is in the processof building a demo facility on the Kona coast of Hawaii.

Cellena announced in 2008 a new process for extracting algae oil without using chemicals,drying or an oil press. The company said that its patent-pending technique uses 26

5Patent application, www.wipo.int/pctdb/en/wo.jsp?wo=2007070452&IA=WO2007070452

A


24/29



kilowatts of power to produce 12,000 gallons of algal oil per hour with a yield of 50% fromthe initial algal paste.

The company also constructs and operates algae biofuels plants that use effluent gasesfrom power plants to produce renewable fuels and to mitigate emissions of carbon.

Canada. Backed by oil companies and utilities, Canadian researchers have plans todevelop algae farms that convert CO2 from oil sands projects and coal-fired power plantsinto biofuels, chemicals and fertilizers. A consortium led by the Alberta Research Councilhas completed research that suggests the algae would thrive under northern light andtemperatures with an appropriate covering for winter months.

The $20 million algal project is being funded by major Canadian energy companies,including Petro-Canada, Royal Dutch Shell, EnCana Corp. and Epcor Power, a coaldependent Alberta-based utility.

Their research indicates that for the large industrial emitters, the system could take about30% of their emissions. Their goal is eliminating 100 million tons of CO2 emissions a year;

about a third of Alberta's current production of greenhouse gas emissions. The researchersinclude scientists from Alberta, Saskatchewan, Manitoba and Quebec; believe they canboost the productivity of the system so that CO2 can be removed at a cost of about $25 aton.

Health foods and nutraceuticalshe nostoc commune represents a broad set of patents for a wide variety of algaefood, fuel, water, pharmaceutical and health applications.

Nostoc commune. Filed by Fan Lu in North Carolina and others, U.S. Patent 6,667,171describes a process for producing Nostoc formulations using a plurality of photosyntheticmicrons including cyanobacteria. U.S. Patent 6,579,741 discloses a method of culturingalgae capable of producing large amounts of unsaturated fatty acids and phototrophicpigments and/or polysaccharides.6

These patents describe methods for cultivating edible nostoc commune formulations andtheir use for promoting health. In addition, the invention relates to methods for promotingthe health of an individual utilizing the Nostoc formulations, dietary supplements, foodproducts and/or pharmacological compositions. This invention also provides a method forcultivating Nostoc commune comprising (a) isolating and purifying Nostoc commune; (b)culturing the Nostoc commune; and (c) conditions suitable for optimal growth of Nostoccommune. These Nostoc patents, similar to other broad patents, threaten to lock up a majoralgal species from public use. It will take years to determine how broadly algal patents willbe enforced.

6 Colonies of nostoc commune: methods for cultivating edible nostoc commune and edible

nostoc commune formulations and their use for promoting health,

http://www.freepatentsonline.com/70160704.html

T


25/29



Most of the companies in this health food category harvest natural stands of algae orproduce Spirulina in ponds.

arthrise, based in southern California, began producing Spirulina in 1982. Today,Earthrise Nutritionals' farm is the worlds largest Spirulina farm. Earthrise products

are marketed in 30 countries on six continents.

Hainan DIC Microalgae Co. of China has a joint marketing agreement with Earthrise.The two firms produce over 800 tons of Spirulina each year in open ponds. A third facility inThailand closed in 2006.

Cyanotech, based Hawaii, produces natural astaxanthin and Hawaiian Spirulina Pacificaall natural, functional nutrients that the company claims enhance human health andnutrition. The algae is grown at its 90-acre facility in Hawaii using patented and proprietarytechnology and distributes them to nutritional supplement, nutraceutical, and cosmeceuticalmakers and marketers in more than 40 countries.

BioEarth Spirulina, based in Italy, and Green Valley, based in Germany, get their product,Spirulina Maxima from producers using artificial lakes in Mexico where the product hasbeen grown, harvested and eaten for centuries and more recently from China. The productis sold in tablet form as a health food.

Omega Tech, of Boulder Colorado, markets its patented algal chicken feed rich in omega-3fatty acids. The chicken feed, called DHA Gold for docosahexaenoic acid, the long-chainfatty acid that it contains Omega Tech president, William Barclay, claims chicken meat fromanimals raised on DHA Gold contain five to seven times the amount of DHA in normalcommercially bred chicken.

The feed is made from schizochytrium, a tiny single-cell organism dense with DHA. When

harvested and dried, the algae look like wheat flour that has a golden hue. The companygrows the algae in stainless steel vats. Monsanto is analyzing the product for vitamins andto fortify food or infant formula. Infant formula, unlike human breast milk, does not containthe omega-3 fatty acids.

Dolphin Sea Vegetable Company in Northern Ireland, established in 1993, harvests redmarine algae and markets a variety of products and food supplements directly. They alsosell products to kill bacteria and viruses. DSV supplies wild red marine algae to othermanufacturers and carries out research into the pharmacological benefits of seaweeds andalgae for various medical, pharmaceutical and health foods.

The company is developing PhycoPLEX through clinical trials to examine its effects on

immune system function and modulatory action. The clinical trials are conducted at theUniversity of Ulster, supported by a European Union grant.

Table 8.1 Other Firms working on Algae

Algae BioFuels (PetroSun) Algaen Arare

E


26/29



Aquaflow Biodiesel Biofuels Digest Biofuel Review Bionavitas Carbon Capture Corp Cell Tech Diversified Energy EnAgri Energy Farms Energy Update Ethanol India Genergetics Global Green Solutions GreenEnergy GreenShift Green Start Products

GS Cleantech Infinifuel Inventure Kent Sea Tech Kiwikpower OriginOil PetroAlgae (XL TechGroup) Plaatts Pelletbase Raytheon Renewable Energy Magazine

Texas Clean Fuels Simplexity World Oil

State and university actionsome states are taking action to fund entrepreneurial businesses in renewable energyand biofuels.

Scripps Institution of Oceanography, in La Jolla, California, offers undergraduate andgraduate degrees in marine biology. Scientists such as Stephen Mayfield in the Department

of Cell Biology are studying genetic engineering on algae for biofuel production. GregMitchell teaches and researchers biological oceanography.

Woods Hole Oceanographic Institution, on Cape Cod, Massachusetts, offersundergraduate and graduate programs in marine biology. Scientists are working on the

S


27/29



impact of climate warming on ice algal production in the Arctic Ocean and others areresearching the causes and consequences of red tides.

Hydrogen gas production. Scientists at the DOEs Argonne National Laboratory incooperation with the University of Illinois and Northwestern University are working onconverting algae to hydrogen gas. They are working with algae that contain an enzyme

called hydrogenase, which creates small amounts of hydrogen gas. The objective is toremove the catalyst from the hydrogenase and use it during photosynthesis.

University of Washington, in Seattle and Friday Harbor in the San Juan Islands, offers amarine zoology/botany program for undergraduate and graduate studies. Students maytake courses in the San Juan Archipelago doing field studies of natural history, adaptations,evolution, and taxonomy of algae and herbivores.

University of Miami. The Rosenstiel School of Marine and Atmospheric Science offerdegree programs in marine biology where students study algae, sea grasses and coralreefs among other topics.

University of New Hampshire. Michael Briggs and the Biodiesel Group in theDepartment of Physics is working on cost effective algae-based technologies for biodieselproduction.

Texas. The Emerging Technology Fund in Texas will provide $4 million to Texas AgriLifeResearch and General Atomics to conduct microalgal research and development.

Minnesota has made similar grants available for renewable energy sources.

North Dakota. DOE has partnered with Chevron to develop higher-oil yield strains ofmicroalgae. The Defense Advanced Research Projects Agency, DARPA, is working on aproject with Honeywell, General Electric and the University of North Dakota.

Virginia. Old Dominion University researchers in Virginia have successfully piloted aproject to produce biodiesel feedstock by growing algae at municipal sewage treatmentplants. The researchers hope that these algal production techniques could lead to reducedemissions of nitrogen, phosphorus and carbon dioxide into the air and surrounding bodiesof water. The pilot project is producing up to 70,000 gallons of biodiesel per year.

Arizona State University Polytechnic. LARB, The Laboratory for Algal Research andBiotechnology, works on all phases of algae growth and commercial production for biofuels.The lab produces various species of algae for biofuel feedstocks and tests growing,harvesting and processing variables in the lab and at their field site.

LARB directors Professors Qiang Hu and Milton Sommerfeld supervise projects a series ofprojects such as producing jet fuel from algae and bioremediation of waste water fromhuman wastes, industrial wastes and dairy waste streams. Engineers built portablealgaculture systems that can test the capability of various algal species that may be used toremediate waste water at a variety of sites.


28/29



Some algae in lakes and reservoirs are capable of producing toxins that may cause fishkills and affect human health. LARB is involved in several projects where waters aremonitored to check for the presence of potential toxic algae. Supported by the Salt RiverProject and NSF Water Quality Center, the project uses molecular fingerprinting to detectand treat toxic algae that release toxic compounds in water supplies.

ASU BioDesign Institute and the Global Institute of Sustainability. Professors BruceRittmann and Wim Vermaas, in life sciences have been studying cyanobacteria for the past20 years. Currently, they are researching ways to bioengineer cyanobacteria to producebiofuel. This work sponsored by British Petroleum and Science Foundation Arizona andplans to design and create organisms that store more lipids for biodiesel.

Greenindependence.org. The Algae Collaboratory for Sustainable and Affordable Foodsand Energy at ASU Polytechnic creates a global social network for green food and fuels.This social marketing collaboratory brings together scientists, academics, practitioners andstudents who share knowledge and biotechnology tools to bring algaes full promise to theworld. The collaboratory operates to create sustainable and affordable foods and fuels forall people on Earth. In addition, projects focus on remediating polluted water and air and

creating valuable products such as fertilizers, medicines and vaccines.

The Collaboratory supports sustainability technology development, communication,entrepreneurship and technology transfer for scale-up for commercial algal production.Initiatives are directed toward every stage of algae selection, growth and development,harvest, processing and marketing. The Collaboratory also conducts R3D, research,development, demonstration and diffusion on issues associated with small-scalealgaculture systems that may be sited in villages, wasteland, inner cities, roof tops,balconies and back yards.

Patents and other forms of intellectual property are possibly the strongest threat toalgal production besides ethanol subsidies. Patents may prevent wide adoption of

new production technologies due to the cost of paying patent holders. For example,many of the most productive corn, wheat, rice other food seeds are patented andbeyond the means for many farmers.

The Collaboratory is dedicated to maximizing open source solutions available to all peopleon the planet. An excellent potential solution to the intellectual property issues is thedevelopment of an IP Pool where industry members share their IP and users pay areasonable fee based on use and scale. Educational and research opportunities areexpanding and institutions and additional programs are posted on the collaboratory site.

__________________________Note: Algal firms, institutions and organizations not profiled here may be profiled inthe next edition by sending information to [email protected].


29/29

The Algal Industry SurveyGreen Algae Strategy: End Oil Imports and EngineerSustainable Food and Biofuels

reen Algae Strategyshares the fascinating story of extraordinary innovationoccurring not in deep space or in deep oceans but simply under our feet. Few

people are aware that one of Earths oldest, tiniest and simplest organisms holdssuch great potential for desperately needed sustainable solutions for our very hungry,thirsty and needy planet.

Green Algae Strategy engineers hope for a better life for billions of people who lacksufficient and affordable food, fresh water, fresh air, fertilizer and clean burning fuel forcooking and heating fires.

Algal production holds promise for Green Independence:1. Freedom from oil imports2. Freedom from world hunger3. Moderation of climate change

Algae can provide these solutions while consuming no cropland, no freshwater and nofossil fuels. Every pound of algae grown for food and fuel also captures nearly two poundsof CO2 while releasing pure oxygen into the atmosphere.

Freedom from oil imports will occur by growing algae on desert and wasteland about thesize of Maine. Freedom from hunger will engage 10 million Green Masterminds globallywho have the knowledge and capability for growing nutritious food and high energy biofuellocally with green solar, algaculture. Slowing climate change will occur by diffusing greensolar knowledge and technology globally and seeding ocean dead zones with algae inorder to capture and sequester massive amounts of carbon dioxide.

Mark Edwards is a professor of marketing and sustainability at Arizona State University andhas studied algae as a food source for over 40 years and as a green energy source for thelast several years

G

The Algal Industry Survey - February 2009

Documents